‘Telkom will not lower bid’
Mergers and acquisitions executive Andy Tompkins said the terms of the deal did not include any possibility for Telkom to lower the R2,34bn price tag, or R9 a share plus a dividend of 25c.
Sources in the industry had suggested Telkom would try to renegotiate the price as the deal dragged on, and that fear had driven down Business Connexion’s shares. Yesterday the shares closed at R8.
“In terms of the scheme of arrangement approved by shareholders, the offer from Telkom is not capable of renegotiation,” Tompkins said. Its shares were probably trading below the bid price either because people thought the deal might not be approved, or because it would take longer than expected to get the cash payout, he said.
This week, the competition commission was granted a fourth extension to the date by when it must reach a decision on whether the controversial takeover should be approved. It must make its recommendation by November 17, and its opinion will be passed to the Competition Tribunal for more investigation. That is likely to include hearings.
Tompkins said the tribunal was unlikely to hear the case before January.
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